Rebuilding a nation

A resurgent El Salvador creates a tasty environment for food companies

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El Salvador as an individual concern is small, and country officials know that. But there is strength in resolve and the country is working to be part of the global economy.

 

"Half of our trade is with the U.S.," says Lacayo, "and Central America as a region is number 19 as a buyer of U.S. goods. We are about a year and a half or so away from eliminating the [commercial] Central American borders. We still need to harmonize fiscal policies. We want to ensure we have similar policies."

 

"Both current [U.S. and Canadian trade] agreements are with Central American countries, which is important because separately we cannot succeed in this globalized world," says Vice President Quintanilla. "It has forced us to prepare our strategies and discuss our differences. With those agreements, we will be part of an extension of NAFTA, meaning that from Canada to Panama we will have the biggest region of free trade.

 

 "Not many people know that we are an important trade partner of the United States," he continues. "Sixty percent of our trade is with the U.S., as El Salvador, but if you add the trade of seven Central American countries, we trade with the U.S. in the same quantity as Brazil, mainland China, or Spain. As a region, we are the third largest trade partner of the United States."

 

El Salvador is hoping many of the tools its government has developed, in addition to commercial incentives, will make the country attractive to investors

 

"Many do not know about the telecommunications facilities we have established," says Vice President Quintanilla. "It is probably cheaper to talk from El Salvador to Los Angeles than New York to Los Angeles."

 

Diana Productos Alimenticios

 

Diana, a family business founded in 1951, is the nation's largest snack-maker, supplying some 80 different candies and snacks to the southeastern, southwestern and southern U.S.

 

Diana is typical of Salvadoran company because of its dedication to its 3000 employees. A family may have three generations working in its facilities, and Diana offers on-site medical clinics, occasional on-site housing and educational opportunities "Some people actually learn to read here," says Renato Barrera, gerente de nuevos mercados.

 

Diana uses a fleet of 60 to 70 small vehicles to make deliveries to tiendecitas cross the country

 

"It's a sentimental market," says Barrera. "We are more concerned with volume than price point."

 

 The vertical company makes its own flour and processes its own oil.

 

"Labor costs are more expensive in the United States," he adds. "In agribusiness are the opportunities you can find here that are not in the United States; there are agricultural products that cannot be grown in the U.S. These can be exported to the United States and be something different for the U.S. consumers."

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